Banks propose generous dividends but some remain cautious on payouts

LPBank has proposed a 2025 dividend payout plan with a cash ratio of up to 30 per cent, to be executed in 2026. The bank said its total distributable profit by the end of 2025 reached $376.3 million.

The bank will submit to its AGM on April 28 a plan to use $354.8 million to pay dividends at a 30 per cent rate – the highest cash dividend ever paid by the bank and among the highest in the sector. Last year, LPBank paid a 25 per cent cash dividend, corresponding to $298.7 million in distributed profit.

At this year’s shareholder meeting, LPBank will propose a modest profit growth target of 5 per cent compared to the previous year, estimated at $599.3 million. Credit growth is projected at 11.7 per cent, reaching $17.5 billion. Total assets are expected to increase by 1.6 per cent to $24.6 billion.

At VIB’s AGM 2026 on April 8, shareholders approved a 9 per cent cash dividend plan. The total payout is estimated at more than $120 million, sourced from retained earnings, as of the end of 2025.

At the same time, shareholders have approved a plan to increase the bank’s charter capital from over $1.36 billion to a maximum of over around $1.49 billion, equivalent to a 9.7 per cent increase.

Specifically, VIB plans to issue more than 323 million bonus shares at a ratio of 9.5 per cent and 8 million shares under an employee stock ownership plan for staff with strong performance in 2025.

Meanwhile, ACB’s AGM 2026 on April 9 approved a plan to raise its charter capital through a stock dividend at 13 per cent. If implemented, ACB’s charter capital will rise by $267 million, surging from $2.05 billion to $2.32 billion.

The plan is expected to be carried out in the second quarter (Q2) of 2026, subject to regulatory approval.

In addition to the 13 per cent stock dividend, ACB will pay a 7 per cent cash dividend. The total dividend for 2025 will reach 20 per cent, equivalent to $410.9 million. Remaining profit after dividend payments under this plan will approximate $600 million.

ACB also plans to raise its 2027 dividend payout to 25 per cent, including 15 per cent in shares and 10 per cent in cash – equivalent to approximately $580 million from its retained earnings.

“We expect to maintain a 25 per cent dividend payout for 2027. Therefore, this year’s steps are necessary preparation to ensure sustainable shareholder benefits throughout the 2025-2030 strategic cycle,” said ACB chairman Tran Hung Huy.

VPBank plans to pay a 2025 dividend at 5 per cent in cash, expected to be implemented in Q2 or Q3 of 2026. The exact timing will be decided by the Board of Directors.

The total payout is estimated at $160 million. After the dividend payment, the bank’s retained earnings will stand at $639.4 million.

At the same time, VPBank’s leadership has proposed increasing the bank’s charter capital from $3.17 billion to $4 billion through share issuance, equivalent to a 26.04 per cent hike.

If completed, VPBank will become the bank with the largest charter capital in the system, which is currently held by Vietcombank at $3.34 billion. The bank also targets pre-tax profit of $1.65 billion in 2026, up 35 per cent on-year.

In contrast to the high dividend payout trend, some banks continue to retain earnings and have no plans to pay dividends for shareholders in 2026.

Specifically, Eximbank reported accumulated undistributed profit of $135.5 million by 2025, but to strengthen its financial capacity for growth and sustainable development, the bank will not pay dividends.

This marks the second consecutive year that Eximbank has proposed a no-dividend plan to shareholders. Previously, at the AGM 2025, despite accumulated profit of over $101 million by the end of 2024, the bank decided to retain the entire amount.

Eximbank assesses that 2026 will continue to be a challenging year for the global economy amid geopolitical tensions, conflicts, and rising trade protectionism.

Changes in US trade policies, the Russia-Ukraine conflict, tensions in the Middle East, and competition among major powers are expected to impact global supply chains significantly, thereby affecting Vietnam’s economy.

Similarly, Techcombank unveiled that as of the end of 2025 its undistributed post-tax profit approximated $1.8 billion, yet the bank has no plans to pay dividends this year.

Previously, in 2024 and 2025, Techcombank paid cash dividends at rates of 15 per cent and 10 per cent, respectively, after 10 consecutive years of retaining earnings.

Meanwhile, Sacombank’s pre-provision operating profit in 2025 reached $760.4 million, up 29.4 per cent compared to 2024.

However, due to a significant increase in credit risk provisioning expenses aimed at improving asset quality, the bank’s consolidated pre-tax profit amounted to only $305 million, equivalent to 52 per cent of its target.

The most recent dividend payment by Sacombank was in October 2015 with a 12 per cent stock dividend for 2014.

The bank has yet to announce dividend plans for 2025-2026, as it has not completed the resolution of outstanding issues. As such, after more than a decade of restructuring, Sacombank shareholders have yet to receive dividends.

Banks ramp up capital plans ahead of AGM season Many banks are planning significant charter capital increases during the 2026 AGM season through share issuances, stock dividends and private placements to strengthen financial capacity and support future credit growth.

Banks expand financial ecosystems to unlock new growth drivers Banks are expanding into insurance, securities, digital assets and fund management to drive growth, but stronger risk governance will be crucial to ensure system stability.

Banks cut rates as credit growth gains pace At a briefing in Hanoi on April 14, the State Bank of Vietnam's (SBV) executive representative announced the results of banking operations in Q1, with coordinated rate cuts, accelerating credit growth, and flexible policies supporting macroeconomic stability and growth.